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41 yr old with 50K monthly expense wants to retire at 55 with 80 yr life expectancy. What's my retirement corpus?

Milind

Milind Vadjikar  |587 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 10, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Asked by Anonymous - Oct 09, 2024Hindi
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Hi Vivek ji, I am 41 years old and want to calculate my retirement corpus. My monthly expenditure is 50K per month and I plan to retire at an age of 55 years. The life expectancy in my family is about 80 years. Pls help me calculate my retirement corpus. It will be kind of you to provide the calculations so that I can try out various possible scenarios by myself. Thanks in advance.

Ans: Hello;

Your current monthly expenses of
50 K would rise to 1.13 L in 14 years time by the time you retire.(6% inflation considered)

Therefore you would need a retirement corpus of 4.5 Cr invested in an equity savings type mutual fund(Moderate risk)

You may do an SWP at the rate of 3% which will yield you monthly income of around 1.13 L(Inflation adjusted expenses).

The corpus will keep on growing at a net rate of 6% after deducting 3% towards SWP.(A modest return of 9% pa is assumed from equity savings type fund).

After 25 years you will have a corpus of 19.82 Cr, after accounting for SWP withdrawals of 7.86 Cr spread over 25 years.

It will still yield monthly payout of 4.95 L to cover inflation indexed expenses at the age of 80 years for you.

You can use many online tools available for retirement planning to do your various calculations, as desired.

Happy Investing!!

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.
Asked on - Nov 03, 2024 | Answered on Nov 04, 2024
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Hi Milind Sir, I went through your above answer on how to calculate a retirement corpus. The first point regarding the inflation adjusted expenses during time of retirement (1.13L in 14 years) is clear. However, in the above example, how did you arrive to the fact that the retirement corpus would be 4.5 Cr? Can you pls share the calculations for this point. Thanks in advance.
Ans: Sharing calculation is not possible.

Thank you for your kind understanding;
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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This will be kind of a long story... I've been in a relationship for over 4 years now and I really love spending time with my girlfriend and I never cheated on her...like she is the one, but as time goes I seem to have a different opinion of what I want in life...for she doesn't want kids and I do and sometimes that's a reason for discussion but not over-escalating it just ends there...lately we don't even have sex like about 2 months now...she fell ill for some time and now she is ok we barely get to go out. So I started this new job on some kind of high position within the company like a month ago and we had an after-office time, there was this girl there that is in another department...didn't really called my attention in there, we sat in a table and started talking and drinking, in one of the things we talked I spoke about my current relationship (everyone did) and even metioned the I want kids problem. The party was over finished in that place and we hit a club. In there of course booze was up and this girl just started dancing all sexy on me and I was like oookay then...well of course alcohol gets the best or worst of us so I started dancing with her and In one of those moments we were sooo close and I yes...I tried to kiss her...she just laughed and avoided in the first time but then...we were kissing and touching just too passionaly that having the clothes on was really annoying ..well I was really drunk, problem for me was about our other colleagues...will they report this...will she tell? (this can really go against me as I am new in the company) will others tell (because everyone saw us) I didn't wrote her later because I was too damn embarrassed, in the next week I was like so nervous at the job and when we cross paths we just say hi in a normal way and this just brings thoughts to my head of guilt and embarrassement but NOT REGRETTING thoughts... this no regret thing is driving me crazy...I see her and start looking at her in a different way, like I pay attention to the way she dress, the way she has her hair, she walks and I said to myself...WTF IS HAPPENING am I falling gor this girl? So I wrote her and wanted to clear up some things...if she told someone (but it was more line an excuse just to talk to her about what happened and try to know what she felt), but she justs...DOESN'T HAVE IDEA WHAT I AM TALKING ABOUT...really? And as you can imagine we didn't get to talk about this and honestly in my head I get lot of mixed ideas about this reaction of her...like the things I said before anything happened...like my relationship thing or she is just applying some sort of strategy or It was just one night rush and FULL of regrets now... but c'mon we see each other everyday. I KNOW I did bad for cheating on my girlfriend but the emotion there is absolutely gone and the thing with this girl...well when we talked in the bar I spoke of wanting to have kids and everything maybe she also wants it? Did she took all the first interaction and I was really being attractive there? Well what should I do? I am not writting her anymore to push her to talk...her reaction of ignoring what happened gives me the right sign to stop it there I want her really bad and I'm about to give up my relationship in these days...
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Remember, whatever happens with this colleague, there’s value in addressing the core issues in your relationship first. Taking time to be clear about what you want in a partnership—whether it’s more shared goals, connection, or family—can help you find fulfillment in the long run, whether it’s with your current partner or someone new.

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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